Practice areas
Concentration
Concentration is having too much of your money in one stock, sector, or type of investment. A broker who builds or keeps an over-concentrated portfolio without good reason exposes you to losses that diversification would have limited.
The incentive is not subtle: illiquid investments pay the stockbroker far higher commissions than liquid ones. A portfolio that is 60% in one private placement did not get that way by accident.
Over-concentration frequently appears alongside a suitability violation, and the two are usually argued together. Ms. Stoneman has successfully represented hundreds of investors in concentration cases.
If any of this sounds like your account, the next step costs nothing: a free, honest evaluation. Tell me what happened or call (719) 783-0303.
Common questions
Concentration: what clients ask
How much in one investment is too much?
There is no single number, but an investment large enough that its failure would seriously damage your finances is a warning sign, especially for investors who need income or are near retirement.
Is concentration a claim on its own?
It is usually brought as part of an unsuitability or negligence claim: the broker recommended or maintained a portfolio that was not appropriate for you because it lacked diversification.
Has Tracy written about this?
Yes. Tracy Pride Stoneman and Douglas J. Schulz co-authored “Concentration: Too Much of a Good Thing?” in the PIABA Bar Journal. It is available on the Publications page.
Your move
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Tell me what happened. I will tell you honestly whether you have a case worth pursuing — and every way I can be paid, including contingency: nothing unless you recover.